From Nasdaq: 2025-04-24 15:04:00

Morgan Stanley is selling off the final $1.23 billion of debt tied to Elon Musk’s $44 billion acquisition of Twitter, now X, in a fixed-rate loan offering at 9.5% interest and a discounted price of 97.5-98 cents on the dollar. This concludes nearly two years of exposure for the bank to the leveraged buyout.

Other major lenders, including Bank of America, Barclays, and Mitsubishi UFJ, were part of the original financing package totaling $13 billion. Banks have gradually shed their commitments as improving revenue at X boosts confidence. The sale marks the endpoint of a significant leveraged financing risk.

Morgan Stanley offers the last $1.23 billion of X acquisition debt at a 9.5% fixed rate, priced at 97.5-98 cents on the dollar. Original financing included secured, unsecured, and revolving credit. Bank of America, Barclays, and Mitsubishi UFJ were among the initial lenders, with exposure reduction reflecting confidence in X’s revenue prospects.

Investors will focus on Morgan Stanley’s Q1 results and X’s ability to monetize new AI ventures. The successful sale of the debt shows renewed investor appetite for leveraged tech loans. The completion of the transaction allows major lenders to exit a high-risk exposure and focus on new opportunities.



Read more at Nasdaq: Morgan Stanley Cleanly Exits Elon Musk’s (TSLA) X Debt in $1.23 Billion Sale